SinCity suit for $1.3m

A FAMED Gold Coast nightclub’s operator is suing for $1.3 million after a landlord, alleging rent arrears, evicted it during the COVID-19 pandemic.

Surfers Paradise’s SinCity operator Rockbah Pty Ltd lodged the counterclaim with its defence in Southport District Court this week. It claims to have emails proving a rent variation which should never have seen it locked out. The claim adds further legal action against other parties will be lodged at a later date.

SinCity, a favourite of Usain Bolt during 2018’s Commonwealth Games, was locked out of the Orchid Ave premises it occupied for 13 years after its lease was terminated on April 23.

Melbourne accountant David Brandi’s Bada Bing Holdings, alleging rent arrears, had the locks changed to block Rockbah. Rockbah has always denied arrears, citing a reduced rent variation of $10,000 a week that was paid and accepted for three months from mid-December to mid-March.

But Bada Bing filed a lawsuit three weeks ago claiming $268,000, alleging a demand for payment was futile.

Now Rockbah’s defence and counterclaim, claims on December 10, the landlord and nightclub operator agreed to reduced $10,000-a-week rent.

Rockbah claims the rent variation was written, partly oral and partly “by conduct” after 14 $10,000 payments were accepted over three months.

It says it complied with the rent variation until it had to shut SinCity on March 16 due to unprecedented COVID-19 restrictions. Rockbah then advised it would not be able to comply with the rent variation because of the forced closure.

Rockbah’s defence reveals a dispute arose about a shutdown period rent amount of $50,000. Rockbah did not think it was liable to pay it because Bada Bing “failed or refused to negotiate” as required by the National Cabinet’s COVID-19 commercial leases Code of Conduct. Rockbah also argues a breach notice requiring alleged rent arrears of $268,250 be paid within two weeks was “not reasonable”.

Rockbah’s $1.3 million counterclaim includes $63,070.50 for removal and recovery of fit-out gear, $20,301 for AV gear, relocating elsewhere, halted trading and new lease costs.

Rockbah estimated earnings turnover of $1.29 million in the three months it says it will take to find a new site after July 12 when it anticipates being able to reopen under Queensland’s pandemic recovery road map.

Rockbah’s defence says at “material” times prior to April that Orchid Ave Realty Ptd Ltd, trading as Ray White Commercial (Gold Coast), acted as agent for Bada Bing on the premises and lease. It notes Artesian Hospitality which has multiple Surfers venues had authority to act for Rockbah.